From a business perspective this makes sense for Google. A big problem with Skype was always the lack of ubiquity. Lot of people had it, but it required another install and explicit configuration. Now that Skype is nearly bundled with W10 and WebRTC has made skype.com trivial, the gap for Google to move in is closing. If this rolls out with Google branded Android, people will use it irrespective of its merits (a la bundled Internet Explorer). Interop on iOS makes it stand out from Facetime. There's always room to change terms later when it becomes a household name.
Also, with all these services adding an E2E sticker on their communications, Google's hand was forced, they're not trend setters here and they shouldn't be applauded for being extremely late to the privacy game.